The news comes a day after Japan's second-largest automaker named Senior Vice President Makoto Uchida as its next chief executive, picking an outsider who joined mid-career.
The company said the action was to enable Nada to focus on important tasks including the forthcoming legal action.
Nada, who was under pressure to leave the company following the pay scandal involving Ghosn, was named senior adviser overseeing special projects. He will report to acting Chief Executive Officer Yasuhiro Yamauchi.
Nissan has been shaken by the arrest of Ghosn last year on allegations of financial misconduct, which he denies, and the more recent exit of previous CEO Hiroto Saikawa after he admitted to being improperly overpaid.
(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Sriraj Kalluvila)